The Google CEO wrote in an e-mail to employees that the company wants to lift morale. What better way than with across-the-board pay raises?
Beginning in January, every Google employee on Earth ‚Äď that‚Äôs about 23,000 folks ‚Äď will receive a 10 percent raise, according to media reports.
That‚Äôs not all, though. Business Insider reported that employees will also receive a raise equivalent to their annual target bonus and performance-based ‚Äúmerit increases.‚ÄĚ If that isn‚Äôt enough to give you employer envy, Google is also paying the taxes on its employees‚Äô $1,000 holiday bonuses.
Business Insider, which printed an e-mail it believes to be from Schmidt to employees, reported the CEO also said a recent survey showed employees valued salary more than other components of their pay so a portion of their bonuses is being moved to their base salary.
‚ÄúGooglers, you are what makes this company great, and our goal here is to recognize you for your contribution, in a way that‚Äôs meaningful to you. Thank you for all that you do, and for making Google a place where magic happens,‚ÄĚ Schmidt reportedly wrote.
The Wall Street Journal reported that the pay hike is an attempt to stave off competition for its talent, especially from Facebook Inc. About 10 percent of Facebook‚Äôs workers are Google veterans, it said.
While the raises are sure to be a hit with Google‚Äôs workforce, the newspaper said that they are also sure to raise concerns among investors about Google‚Äôs expenses.
It‚Äôs difficult to estimate what the raises will cost the search giant, but the holiday bonuses alone will run more than $20 million.